4975093 ch 03 exim policy of india

8/4/2019 4975093 Ch 03 Exim Policy of India

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Exim Policy

The foreign trade of India is guided by the Export-Import policy of the Government of India.

Regulated by The Foreign Trade Development and

Regulation Act 1992.Exim policy contain various policy decisions with

respect to import and exports from the country.

Exim Policy is prepared and announced by the centralgovernment.

Exim Policy of India aims to developing exportpotential, improving export performance, encouragingforeign trade and creating favorable balance of paymentposition.


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General Objectives of Exim Policy

To establish the framework for globalization.

To promote the productivity competitiveness of Indian

Industry.

To Encourage the attainment of high and internationally

accepted standards of quality.

To augment export by facilitating access to raw

material,intermediate, components, consumables andcapital goods from the international market.

To promote internationally competitive import

substitution and self-reliance.


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Exim Policy of India 2004-2009

Hon. Shri Kamal Nath minister for commerce and

industry has announced on 31st Aug 2004, Indias

first Exim policy.

The duration of the policy from 1st Sept. 2004 to 31st

March 2009.

It takes an integrated view of the overall

development ofIndias foreign trade.Aim of the policy is to double the global

merchandise trade within the policy time period of 5

years


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Objectives of Exim Policy 2004-2009

To double our percentage of share of global

merchandise trade within the five year.

To act as an effective instrument of economic growth

by giving a thrust to employment generation.


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Highlights of the New Foreign Trade Policy

2004-2009

Special Focus Initiatives: Semi-urban and Rural Area

Agriculture : Vishesh Krishi Upaj Yojana and Agri ExportZones

Handlooms and Handicrafts: Mark under Market AccessInitiatives Scheme and Proposed to Start new SEZ.

Gems and Jewellery: Import of gold of 18 carat and above has

been permitted under the replenishment scheme Leather and Footwear : Duty free import entitlement of

specified items shall be 5% of FOB value of exports during the

preceding year


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Export Promotion Schemes

Assistance to States for Infrastructure Development of

Exports [ASIDE]

Market Access Initiative [MAI]

Marketing Development Assistance [MDA]

Towns of Export Excellence

Target Plus Scheme.

Served from India Scheme

Service Export Promotion Council


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New Status Holder Categorization

Category Total Performance

(In Rs)One Star Export House 15 crore

Two Star Export House 100 crore

Three Star Export House 500 croreFour Star Export House 1500crore

Five Star Export House 5000 Crore


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Implications of The Foreign Trade 2004-09

Implications on Indian Economy:

This policy propose to simplify procedures and develop

technology and infrastructure.

Implications on Agriculture:

Special Agricultural Produce Scheme has been introduced for

promoting the export of fruits, vegetables, flowers, and their

value added products.

Implications on Handlooms and Handicraft:

Establishment of Handicraft SEZ and Handicraft Export

Promotion Council would promote development of Handloom

and Handicraft Industry.


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Implications on Gem and Jewellery Sector :

This is special thrust area in this policy.

Duty free imports of other inputs would give a further boost

to this sector

Implications on Leather and Footwear Industry :

Duty free import as a specified percentage of exports.

Exemption on customs duty on equipment for effluenttreatment plants would help promoting export form this

sector.


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Implications on Service Industry :

An exclusive service promotion council has been set up in

order to map the opportunities for key services in key market.

Develop strategic market access programmes like brandbuilding in co-ordination with sectoral players and recognize

nodal bodies of the service industry.


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Annual Supplement to Foreign Trade

Policy 2004-09

Minister for Commerce and Industry, Government of

India has announced Annual Supplement 2005, to the

Foreign Trade Policy 2004-09 on the 8th April 2005.


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Highlights of the Supplement

Inter State Trade Council : To engage the State Government in

providing an enabling environment for boosting international

trade, by setting up an Inter State Trade Council.

Removal of Export Cess : Proposed to abolish cess on export ofall agricultural and plantation commodities levied under various

Commodity Board Acts.

Export Promotion Capital Goods Scheme (EPCG) : This

scheme is extended to Agricultural sector, SSI sector, RetailSectors in order to promote exports from them.

Service Export : To upgrade infrastructure in the service related

companies.


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Agri Export : Benefits under Vishesh Krishi Upaj Yojanahave been extended to exports of poultry and dairy products in

addition to export of flowers, fruits, vegetables and their value

added products. Package for Marine Sector : Duty free import of specified

specialized chemicals and flavoring oils as per a defined list shall

be allowed to the extent of 1% of FOB value of preceding

financial years export.

Advance Licensing Scheme : The Scope of AdvanceLicense for annual requirement has been extended to all

categories of exporters having past export performance.


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Duty Free Replenishment Certificate : Brass scrap,Additives, paper board, and dye stuff have been removed from

the list of items prescribed for import under DFRC.

Procedural Simplification : Proposed to simplifyprocedures and reduce the documentation requirements so as to

reduce the transaction cost of the exporters and thereby increase

their competitiveness.

EDI Initiatives : DGFT shall introduce an automatedelectronic system for filing, retrieval and authentication of

documents based on agreed protocols and message exchange

with other authorities such including Customs and banks.


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Negative List of Exports 2002-07

The negative list consists of goods, the import or export of whichis ether prohibited, restricted through licensing or otherwise to becanalized through a designate government agency.

The negative list of exports, as per the EXIM Policy 2002-07

Prohibited Items : Which items completely banned from theexports. All forms of wild animals including their parts and products.

Special Chemicals as notified by the DGFT.

Exotic birds as notified by the DGFT. Beef.

Sea Shells, as specified

Human Skeleton.

Peacock Tail Red sanders wood in any form.


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Restricted Items : which items allowed for exports underspecial license issued by the DGFT.

Dress materials, ready-made garments, fabrics or textile items

with imprints of excerpts or verses of the Holy Quran. Horses Kathiawadi, Marwari, and Manipuri breeds.

Fresh and frozen silver prom frets of weight less than 300gm.

Paddy (Rice in husk).

Seaweeds of all types.

Chemical Fertilizer all types.


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Canalized Items : can be exported without an export licensethrough designated State Trading Enterprise

Items Canalizing Agency

Onions (Except Bangalore Rose onion

and Krishnapuram Onion)

Export Permitted through Specified

STEs

Niger Seeds Tribal Cooperative Marketing

Federation of India (TRIFED) New

Delhi

National Agricultural Cooperative

Marketing Federation of India(NAFED)

Gum Karaya Tribal Cooperative Marketing

Federation of India(TRIFED), New

Delhi

Iron ore, Manganese ore, and Chrome

ore.

Metals and Minearals Trading

Corporation (MMTC).

Crude Oil Indian Oil Corporation Limited

F l E bl I b d i h


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Freely Exportable Items : can be exported without an exportlicense from DGFT. However export of such items is subject to

certain procedures or conditions.

Item Description Procedures or Conditions

Military Stores as notified by

DGFT

No objection certificate from the Department

of Deface Production and Supplies

Exotic Birds, such as Bangalifinches, White finches and

Zebra

Subject to Pre- shipment inspection.

Bones and bone products Subject to a certificate from chemical and

Allied Products Export Promotion Council

(CAPEXIL)Basmati Rice Subject to registration of contracts with

Agriculture and Processed food Products

Export Development Authority.

4975093 ch 03 exim policy of india

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